Wing Yiu Kwan - Page 16




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          disallowance of the claimed travel, meals, and entertainment                
          expenses.                                                                   
               As discussed above, respondent conceded in full the                    
          adjustments to petitioner's claimed rent or lease expenses and              
          utilities expenses.  Respondent also conceded $870 of the                   
          adjustment to petitioner's claimed car and truck expenses and               
          $284 of the adjustment to petitioner's claimed                              
          depreciation/section 179 expense deduction.  The remaining                  
          adjustments in the notice of deficiency, to petitioner's claimed            
          car and truck expenses, depreciation/section 179 expense                    
          deduction, and travel, meals, and entertainment expenses have               
          been sustained by the Court.  Petitioner's evidence fell short of           
          what was required to allow the bulk of the claimed car and truck            
          expenses and depreciation/section 179 expense deduction, or any             
          of the claimed travel, meals, and entertainment expenses.                   
          Furthermore, petitioner presented no evidence to show that he               
          used due care in claiming the disputed items on his 1997 return             
          that were subsequently adjusted in the notice of deficiency and             
          sustained by this Court in favor of respondent, nor did                     
          petitioner present evidence to show that he had reasonable cause            
          to claim such items.  Petitioner failed to maintain adequate                
          books and records to support the majority of the costs and                  
          deductions at issue herein.  Therefore, the Court finds that                
          petitioner negligently or intentionally disregarded rules or                
          regulations with regard to the adjustments in the notice of                 






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